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    Earnings Per Share

    Uploaded by

    Yeshua Deluxius
    The document contains a quiz on earnings per share (EPS) calculations and disclosures. It asks multiple choice questions about when EPS is required to be disclosed, for which entities it is required, and how to calculate basic EPS. Some key points covered are: - EPS disclosures are required for public entities and those issuing shares publicly - Basic EPS is calculated using the average shares outstanding during the year - Non-cumulative preference dividends not declared are ignored in basic EPS calculations - Cumulative preference dividends, whether declared or not, are deducted from earnings in basic EPS.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Earnings Per Share

    Uploaded by

    Yeshua Deluxius
    45 views3 pages
    The document contains a quiz on earnings per share (EPS) calculations and disclosures. It asks multiple choice questions about when EPS is required to be disclosed, for which entities it is required, and how to calculate basic EPS. Some key points covered are: - EPS disclosures are required for public entities and those issuing shares publicly - Basic EPS is calculated using the average shares outstanding during the year - Non-cumulative preference dividends not declared are ignored in basic EPS calculations - Cumulative preference dividends, whether declared or not, are deducted from earnings in basic EPS.

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    Earnings per share

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    The document contains a quiz on earnings per share (EPS) calculations and disclosures. It asks multiple choice questions about when EPS is required to be disclosed, for which entities it is required, and how to calculate basic EPS. Some key points covered are: - EPS disclosures are required for public entities and those issuing shares publicly - Basic EPS is calculated using the average shares outstanding during the year - Non-cumulative preference dividends not declared are ignored in basic EPS calculations - Cumulative preference dividends, whether declared or not, are deducted from earnings in basic EPS.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views3 pages

    Earnings Per Share

    Uploaded by

    Yeshua Deluxius
    The document contains a quiz on earnings per share (EPS) calculations and disclosures. It asks multiple choice questions about when EPS is required to be disclosed, for which entities it is required, and how to calculate basic EPS. Some key points covered are: - EPS disclosures are required for public entities and those issuing shares publicly - Basic EPS is calculated using the average shares outstanding during the year - Non-cumulative preference dividends not declared are ignored in basic EPS calculations - Cumulative preference dividends, whether declared or not, are deducted from earnings in basic EPS.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Activity 1. Encircle the letter that corresponds to your answer.

    1.) Which is a required disclosure on the face of income statement in relation to earnings
    per share?
    a. Basic earnings per share only
    b. Diluted earnings per share only
    c. Neither basic nor diluted earnings per share
    d. Both basic and diluted earnings per share

    2.) EPS disclosures are


    a. Required for all public and non public entities
    b. Required for public entities and encouraged for non public entities
    c. Encouraged for public entities and required for non public entities
    d. Encouraged for all entities

    3.) EPS disclosures are required for


    a. Entities whose ordinary shares and potential ordinary shares are publicly traded
    b. Entities that are in the process of issuing shares in the public market.
    c. All entities
    d. Entities whose ordinary shares and potential ordinary shares are publicly
    traded or entities that are in the process of issuing ordinary shares in
    public market

    4.) When an entity issues both consolidated and separate financial statements, the EPS
    information is required
    a. For both sets of financial statements
    b. In neither set of financial statements
    c. Only for consolidated financial statements
    d. Only for separate financial statements

    5.) Earnings per share shall be computed on the basis of


    a. Ordinary shares outstanding at the end of the year
    b. Ordinary shares outstanding at the beginning of the year
    c. Ordinary shares outstanding at the middle of the year
    d. Average ordinary shares outstanding during the year

    6.) Earnings per share shall be reported for all of the following, except
    a. Continuing operations
    b. Discontinued operations
    c. Net income
    d. Net cash provided by operating activities

    7.) Earnings per share shall be calculated before accounting for which of the following
    items?
    a. Preference dividend for the period
    b. Ordinary dividend
    c. Taxation
    d. Non controlling interest

    8.) Ordinary shares issued as part of a business combination are included in the EPS
    calculation from
    a. The beginning of the accounting period
    b. The date of acquisition
    c. The end of the accounting period
    d. The midpoint of the accounting year

    9.) In computing basic earnings per share, the amount of annual preference dividends on
    noncumulative preference shares shall be
    a. Deducted from net income whether declared or not
    b. Deducted from net income only when declared
    c. Added to net income only when declared
    d. Ignored

    10.) In computing basic earnings per share, the amount of annual preference
    dividends on cumulative preference shares for the period shall be
    a. Ignored
    b. Deducted from net income only when declared
    c. Deducted from net income whether declared or not
    d. Added to net income whether declared or not

    11.) In computing basic earnings per share, an entity would include which of the
    following?
    a. Dividends on nonconvertible cumulative preference shares
    b. Dividends on ordinary shares
    c. Interest on convertible bonds
    d. Number of nonconvertible cumulative preference shares

    12.) When computing basic earnings per share, noncumulative preference dividends
    not declared should be
    a. Ignored
    b. Deducted from earnings for the year
    c. Added to earnings for the year
    d. Deducted, net of tax, from earnings for the year

    13.) When computing basic earnings per share, the current year dividends not
    declared on cumulative preference share shares should be
    a. Deducted from earnings for the year
    b. Deducted, net of tax, from earnings for the year
    c. Added to earnings for the year
    d. Ignored

    14.) In computing basic loss per share, the annual preference dividend on cumulative
    preference shares is
    a. Ignored
    b. Deducted from the net loss whether declared or not
    c. Added to the net loss whether declared or not
    d. Added to the net loss only when declared

    15.) Earnings per share computation is calculated before accounting for which of the
    following?
    a. Preference dividend for the period
    b. Ordinary dividend
    c. Taxation
    d. Minority interest

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